Analog-to-digital converters (ADC) convert an analog voltage into a binary representation in the form of digital bits. The resolution of the ADC is expressed in the number of digital bits into which the analog voltage is converted. Generally, the higher resolution that is desirable, the more precision required in the components of the analog-to-digital converter. For example, amplifying transistors, etc. need to have tighter tolerances and be very precise for enabling a meaningful least significant bit resolution.
The obvious tradeoff of tight tolerance, high precision components is the additional cost and difficulty of building an ADC. It would thus be desirable to have a higher precision ADC without requiring tight tolerance, high precision components.